Question 1

Do I need a down payment for a VA loan?

Accepted Answer

Usually no. VA says a VA-backed purchase loan often requires no down payment as long as the sales price isn't higher than the home's appraised value.

Question 2

Is there a limit on how much I can borrow with a VA loan?

Accepted Answer

With full entitlement, VA doesn't cap the loan, but your lender decides how much you can afford. If part of your entitlement is already in use, the county loan limit affects how much you can borrow with no money down.

Question 3

Can I use my VA loan benefit more than once?

Accepted Answer

Yes. VA says you can use your VA loan benefit again if you sell or refinance a home you bought with a VA-backed loan, and you may still have entitlement left even if you haven't.

Question 4

How much is the VA funding fee?

Accepted Answer

For a VA purchase loan, VA's current chart (effective April 7, 2023) is 2.15% for first use with less than 5% down, 3.3% after first use, 1.5% with 5% or more down and 1.25% with 10% or more down.

Question 5

Who doesn't have to pay the VA funding fee?

Accepted Answer

VA says you're exempt if you receive (or are eligible for) VA compensation for a service-connected disability, receive DIC as a surviving spouse, have a qualifying pre-discharge rating before closing, or are active duty with a Purple Heart.

Question 6

Do VA loans have PMI or mortgage insurance?

Accepted Answer

No. VA says VA-backed purchase loans don't require private mortgage insurance (PMI) or mortgage insurance premiums. Most borrowers pay a one-time funding fee instead.

Question 7

Can the seller pay my closing costs on a VA loan?

Accepted Answer

Yes. VA lets sellers or builders credit some or all of your closing costs, and it doesn't limit those credits. Seller concessions, like paying your funding fee or debts, are capped at 4% of the home's reasonable value.

Question 8

Is there a minimum credit score for a VA loan?

Accepted Answer

VA itself doesn't set a minimum credit score, but many lenders do, so it pays to compare more than one lender.

Question 9

What kinds of homes can I buy with a VA loan?

Accepted Answer

VA says a VA-backed purchase loan can buy a single-family home or a property with up to 4 units, a condo in a VA-approved project, a manufactured home or lot, or build a new home. You must live in it.

Question 10

What is a VA IRRRL (streamline refinance)?

Accepted Answer

An Interest Rate Reduction Refinance Loan replaces your existing VA-backed loan with a new one, often to lower your payment or make it more stable. You must already have a VA-backed loan on the home and certify you live or used to live there.

Question 11

Can a surviving spouse get a VA home loan?

Accepted Answer

Yes, in certain cases. VA says you may get a Certificate of Eligibility as the spouse of a veteran who died in service or from a service-connected disability (with remarriage rules), is missing in action or a POW, or in some cases was totally disabled before death.

Question 12

Can someone take over (assume) my VA loan?

Accepted Answer

Yes. VA lists assuming a VA-backed loan as an option: the buyer takes over the seller's loan instead of getting a new mortgage. VA's funding fee for an assumption is 0.5%.

Question 13

What happens if the VA appraisal comes in low?

Accepted Answer

VA backs a loan only up to the lower of the appraised value or the purchase price. If the appraisal is low, the price may need to be renegotiated, or the buyer may cover the difference.

Question 14

Can you help me buy a home with a VA loan outside Florida?

Accepted Answer

Yes. Krystal Crichlow helps VA buyers in Tampa Bay, and outside Florida she can refer you to an experienced, VA-savvy agent in your area through her national agent referral network, at no cost to you.

VA home loan questions, answered

Answers from VA's own rules

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